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DECISION No

DECISION No. 97/2000/QD-TTg OF AUGUST 16, 2000 ON THE APPLICATION OF A NUMBER OF MECHANISMS AND POLICIES IN DUONG DONG TOWNSHIP, PHU QUOC DISTRICT, KIEN GIANG PROVINCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposals of the People�s Committee of Kien Giang province in Report No.09/TT-UB of April 3, 2000, and of the Ministry of Planning and Investment in Official Dispatch No.1005/BKH-QLKT of February 23, 2000; after considering opinions of the relevant ministries and branches,

DECIDES:

Article 1.- To allow the application of a number of border-gate economic-administrative regulations and development investment promotion policies according to the following stipulations in Duong Dong township, Phu Quoc district, Kien Giang province, with a view to bringing into full play the advantages and distinctive conditions of this area for socio-economic development, ensuring the territorial safety and national security.

Article 2.- The border-gate economic-administrative regulations applied in Duong Dong township (excluding Phu Quoc airport) shall comply with the current law provisions regarding such activities as export, import, temporary import for re-export, entry, exit, goods transit services, bonded warehouses, duty-free shops, fairs, exhibitions, showrooms, export goods production and/or processing establishments, branches and representative offices of domestic and foreign companies, tourism and other services.

The Ministry of Trade shall guide and authorize the People�s Committee of Kien Giang province to grant permits for the establishment of representative offices of foreign companies and the organization of international and domestic trade fairs and exhibitions in Duong Dong township.

The material and technical bases as well as medical and educational services in Duong Dong township shall be upgraded to meet the demand of the island district; training establishments shall be opened up to the collegial level.

Article 3.- Vietnamese and foreign investors investing in production and/or business development or infrastructure construction in Duong Dong township shall enjoy preferential policies under the Foreign Investment Law and Decree No.51/1999/ND-CP of July 8, 1999 detailing the implementation of Domestic Investment Promotion Law (amended) No.03/1998/QH10; the tourist business investment projects in this area shall be included in the list of branches and trades entitled to investment preferences in the Appendix to Decree No.51/1999/ND-CP of July 8, 1999.

Investment projects in this areas shall also enjoy the following preferences:

- The 50% reduction of land and seawater surface rentals against the State�s current rental bracket applicable in Phu Quoc district.

- The lowest tax rate in the law-prescribed tax bracket for foreign investors when they transfer profits abroad.

- The tax rate of 0% for export goods items produced in Duong Dong township.

Article 4.- For investment projects in Duong Dong township, when their investors have demand to change the initial investment purposes, transfer assets together with the land use right to other investors, the president of the People�s Committee of Kien Giang province shall, basing him/herself on the socio-economic development planning and ensuring security and national defense requirements in Duong Dong district, make consideration and decision (for projects falling under the licensing competence of the provincial-level agencies) or report to the central-level competent agencies (for projects falling under the licensing competence of the central-level agencies).

Article 5.- Within 5 years (after this Decision takes effect), in addition to the State budget sources already allocated to the province, the State shall annually make prioritized separate investment through the provincial budget in technical and social infrastructure development projects in Duong Dong township, with 100% of the yearly budget revenues in the area of Phu Quoc district. The capital level and list of infrastructure projects to be invested with this capital source shall be decided by the People�s Committee of Kien Giang province according to the planning and plans approved annually.

Article 6.- Entry-exit management

1. Foreigners (other than Cambodian nationals) and overseas Vietnamese bearing foreign passports shall be exempt from entry-exit visas when entering Duong Dong township for a stay of not more than 15 days; if they wish to travel to other localities outside Duong Dong township (except for the prohibited areas), they shall be granted visas by the entry-exit management agency in Duong Dong township. Foreign tourist vessels are allowed to travel in and out of Duong Dong township according to the contracts signed with Vietnamese tourist companies. Foreign tourists on board ships entering Duong Dong township and other areas (except for the restricted areas) shall have to abide by the said stipulation.

2. Foreign cargo ships and boats are allowed to sail in and out of Duong Dong township to deliver or receive goods under contracts signed with production and/or business organizations. Crew members on those ships and boats are allowed to travel in and out of Duong Dong township with their crew member registers or passports issued by foreign competent agencies. If having the demand for goods delivery or receipt at other ports of Kien Giang province, they shall have to comply with the current provisions of Vietnamese law.

3. Cambodian citizens residing in the provinces bordering with Kien Giang province, who have identity cards or border-gate entry-exit laissez-passers, issued by competent Cambodian agencies, shall be allowed to enter Duong Dong township by sea for a stay of not more than 7 days. In cases where they wish to stay in other areas (except for the restricted areas) on Phu Quoc island, they must obtain permission from the entry-exit management agency and the extended stay duration in such areas on Phu Quoc island shall not exceed 5 days.

4. Cambodian citizens bearing passports (including the non-official passports) and entering Duong Dong township by sea shall be exempt from entry visas and be allowed to stay there for not more than 15 days. If they wish to travel to and/or stay in other localities outside Duong Dong township (except for the restricted areas), the entry-exit management agency in Duong Dong township shall consider and issue visas to them.

Article 7.- Organization of implementation

- The People�s Committee of Kien Giang province shall coordinate with the Ministry of Construction in finalizing the detailed planning on the construction of Duong Dong township, Phu Quoc district, Kien Giang province, according to the new development requirements. On the basis of this planning, the People�s Committee of Kien Giang province shall elaborate short-term and long-term socio-economic development plans for Duong Dong township. The People�s Committee of Kien Giang province shall consolidate the administrative agencies of Phu Quoc island district as well as the agencies assisting the provincial People�s Committee in directing the implementation of the policies mentioned in this Decision in Duong Dong township.

- The ministries of: Planning and Investment, Trade, Defense, Public Security, Construction, Finance, Communications and Transport; the General Department of Customs, the General Department of Tourism and the concerned ministries and branches shall have to guide in detail the implementation of this Decision and coordinate with the People�s Committee of Kien Giang province in effectively applying the policies and regulations mentioned in this Decision.

- After two years of implementation, the People�s Committee of Kien Giang province shall have to assume the prime responsibility and coordinate with the ministries and centrally-run branches in preliminarily reviewing the application of the above-mentioned policies and regulations, proposing to the Prime Minister adjustments and/or supplements thereto, which are suitable to the practical situation of Duong Dong township.

Article 8.- This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committee of Kien Giang province shall, according to their functions, tasks and powers, take initiative in organizing the implementation of this Decision and implement it.

Prime Minister
PHAN VAN KHAI